Tag Archives: Real estate

Blue Owl Capital Completes Acquisition of Oak Street Real Estate Capital

Blue Owl logo

New York, New York and Chicago, Illinois – December 30, 2021 – Blue Owl Capital Inc. (“Blue Owl”) (NYSE: OWL) announced today the completion of its acquisition of Oak Street Real Estate Capital, LLC (“Oak Street”) and its investment advisory business. The transaction was previously announced in October of 2021.

Founded in 2009, Oak Street is a Chicago-based firm with over 35 employees and $12.4 billion of assets under management as of September 30, 2021. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Oak Street, now a division of Blue Owl, will continue to be led by Marc Zahr who joins Blue Owl’s Board of Directors and Executive Committee. Oak Street’s Chicago office is now an additional office for Blue Owl.

Doug Ostrover, Co-Founder and CEO of Blue Owl, said: “We are thrilled to officially welcome Marc and the Oak Street team to Blue Owl. Oak Street is the industry’s preeminent net lease platform with meaningful capital, scale, and expertise that will further expand Blue Owl’s range of investment solutions. We look forward to working closely together and are excited for what the future holds.”

Marc Zahr, Co-Founder and CEO of Oak Street, said: “Through its direct lending and GP stakes solutions, Blue Owl has built a one-stop shop for alternative asset managers in solving capital needs. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.”

Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP acted as legal counsel to Oak Street.

About Blue Owl

Blue Owl Capital is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. The firm’s breadth of offerings and permanent capital base enables it to offer a differentiated, holistic platform of capital solutions to participants throughout the private market ecosystem, including alternative asset managers and private middle market corporations. The firm had approximately $70.5 billion of assets under management as of September 30, 2021. Blue Owl Capital’s management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. For more information, please visit us at www.blueowl.com.

About Oak Street

Oak Street Real Estate Capital is a diversified real estate investment firm. The firm was founded in 2009 and headquartered in Chicago, Illinois. Oak Street offers a unique platform combining direct and indirect real estate strategies across two lines of business, its Net Lease platform and its Seeding and Strategic Capital platform. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities.

The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities.

Investor Contact
Ann Dai
Head of Investor Relations
owlir@blueowl.com

Media Contact
Prosek Partners
David Wells / Nick Theccanat
Pro-blueowl@prosek.com

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CapMan Nordic Property Income Fund (non-UCITS) acquires a light industrial property with a public sector tenant, in Aarhus, Denmark

Capman

CapMan Real Estate press release
27 December 2022 at 10:15 EET

CapMan Nordic Property Income Fund (non-UCITS) acquires a light industrial property with a public sector tenant, in Aarhus, Denmark

CapMan Nordic Property Income Fund (non-UCITS) acquires a light industrial property with a public sector tenant, in Brabrand, Aarhus. The property is an excellent addition to the fund as it benefits from the growing demand for well-functioning light industrial space and is anchored by a municipal tenant on a long-term lease.

CapMan Nordic Property Income Fund (“CMNPI”) has acquired a light industrial property with a public sector tenant, in Aarhus, Denmark. The property, Sintrupvej 17-19, covers altogether c. 4,600 m2 of leasable space. It is located in Brabrand, Aarhus, a predominantly light industrial and logistics area with office and residential properties nearby. Brabrand is part of Aarhus municipality, just 7 km west of Aarhus city centre, which is accessible by car in approx. 15 min or by bike in 25 min and has easy access to public transportation. The asset is a multi-let property where the largest tenant is Aarhus Municipality on a long-term lease.

In addition to standard maintenance and refurbishments, CapMan plans to improve long-term sustainability of the property by investing in energy savings measures and is looking to certify the property in the future.

”We are very pleased about this addition to our income-focused fund. The Aarhus market for light industrial properties is experiencing great demand and this well-located and functional property is ideally positioned to benefit from this,” shares Peter Gill, Partner, Head of CapMan Real Estate Denmark.

”This is an excellent addition to the fund and to its growing warehouse portfolio, and also a demonstration of our local reach in the Nordics. Despite of a more challenging market there are opportunities to be found. Long-term income derived from a light industrial asset with a municipal tenant is a perfect fit for the fund,” shares Sampsa Apajalahti, Investment Director at CapMan Real Estate and Fund Director of CMNPI.

The property was acquired from Hermod Ejendomme A/S. The acquisition was secured and facilitated in cooperation with RUBIK Properties, a leading international operating partner in Denmark.

CapMan Nordic Property Income Fund is a non-UCITS active open-ended fund that distributes a minimum of 75% of its annual realized profit to its unit holders. The fund focuses on stable income generating properties such as light industrial and warehouse properties, modern offices, necessity-driven retail assets and niche properties in the living sector in most liquid Nordic cities with solid long-term growth fundamentals. The fund accepts new subscriptions on a quarterly basis and targets 7% annual net return.*

CapMan Real Estate currently manages approximately EUR 4.5 billion in real estate assets and the Real Estate Team comprises over 65 real estate professionals located in Helsinki, Stockholm, Copenhagen, Oslo and London.

*Past performance is no guarantee for future returns.

For more information, please contact:

Peter Gill, Partner, Head of CapMan Real Estate Denmark, peter.gill@capman.com, +45 20 43 55 63

Sampsa Apajalahti, Investment Director at CapMan Real Estate and Fund Director of CMNPI, sampsa.apajalahti@capman.com, +358 40 575 2363

About CapMan
CapMan is a leading Nordic private asset expert with an active approach to value creation. As one of the private equity pioneers in the Nordics we have built value in unlisted businesses, real estate, and infrastructure for over three decades. With approx. €5 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We are dedicated to set science-based targets to reduce our greenhouse gas emissions in line with the Paris Agreement. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover minority and majority investments in portfolio companies and real estate, and infrastructure assets. We also provide wealth management solutions. Our service business includes procurement and analysis, reporting and back office services. Altogether, CapMan employs approximately 180 professionals in Helsinki, Stockholm, Copenhagen, Oslo, London and Luxembourg. We have been listed on the Nasdaq Helsinki since 2001. Read more at www.capman.com.

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Ardian acquires Milan office building in Via Vespucci 2, Porta Nuova district

Ardian

22 December 2022 Real Estate Italy, MILAN

The building will be transformed to meet Grade A Green+ and Net Zero Energy standards in line with Ardian Real Estate’s team commitment to ESG

Ardian, a world-leading private investment house, has finalized the acquisition of a Milan-based office building from a real estate fund managed by InvestiRE Sgr S.p.A. (Banca Finnat Group) through a co-investment vehicle with Primonial REIM France.

The property is located on Amerigo Vespucci 2 street in the heart of Milan’s Porta Nuova district. The building consists of approximately 12,300 sqm of floor space across for a total of 11 floors – of which nine are above ground.

The property is mainly vacant and will benefit from a major investment and redevelopment plan to transform it into a Grade A Green+ building. This certification is one of the highest sustainability rankings available for minimizing consumption and emissions. As part of the redevelopment, it will also become a Net Zero Energy Building.

“Ardian will invest heavily in transforming this property through a ‘Build-to-Green+’ strategy. As part of the development, we will work in accordance with the terms of the Paris Agreement to minimize CO2 emissions during construction and over the building’s lifetime. We have already launched a design competition inviting some of the most prestigious international studios to submit plans for the building. Our goal is regenerate an important part of the city by creating an attractive place to live for the local community and turning this iconic building into a pioneering example of sustainable redevelopment. “ Matteo Minardi, Managing Director, Ardian

” Even in a difficult geopolitical and macroeconomic climate, Ardian is continuing to invest in strategically located assets in the Italian real estate market. As a result of the Covid-19 pandemic and amid the energy transition, we have seen a shift in demand towards higher quality assets aligned to international ESG standards. Ardian’s strategy is to respond to this market trend by delivering high-performing and sustainable assets.” Rodolfo Petrosino, Senior Managing Director, Ardian

Advisor

  • Ardian

    • Legal: Ashurst
    • Fiscal: 5Lex
    • Administrative law: Gattai, Minoli, Partners
    • Technical aspects: Yard Reeas, General Planning
    • Notary office: Milano Notai
    • Commercial due diligence: JLL

  • Seller

    • InvestiRE SGR S.p.A

ABOUT ARDIAN

Ardian is a world leading private investment house, managing or advising $140bn of assets on behalf of more than 1,400 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. Private Wealth Solutions offers dedicated services and access solutions for private banks and family offices worldwide. Ardian is majority-owned by its employees and places great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 1000+ employees, spread across 15 offices in Europe, the Americas and Asia, are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility.
At Ardian we invest all of ourselves in building companies that last.

www.ardian.com

Press contacts

Ardian

HEADLAND

ardian@headlandconsultancy.com  

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CapMan Real Estate acquires a centrally located office property in Oslo, Norway

Capman

CapMan Real Estate acquires a centrally located office property in Oslo, Norway

The CapMan Nordic Real Estate III Fund (CMNRE III) has agreed to acquire Sørkedalsveien 6, an office property located in Majorstuen, Oslo city centre from Entra. The property, immediately located in the second largest public transport hub in the area, has altogether 19,300 m2 of space spread over 18 floors above ground and two below. CapMan Real Estate aims to modernise the building focusing amongst other things on improving its energy efficiency and targeting a BREEAM in-use Excellent or Outstanding rating.

Sørkedalsveien 6, is a prime office property located in Majorstuen, Oslo. The iconic property consists of approximately 17,200 m2 office, 1,300 m2 retail and 900 m2 storage space distributed across 18 floors above ground and two underground floors. It also has 70 parking spaces in the basement.

Majorstuen is the second largest public transport hub in the area with around 12 million annual commuters. The nearest subway station and several bus and tramlines are only a two-minute walk away from Sørkedalsveien 6 and a new subway line connecting Majorstuen all the way to Fornebu, a growing residential area, will start running in 2029 and further increase the asset’s connectivity.

Currently, the building is fully let to KPMG and Power Norge AS. The building serves as KPMG’s Norwegian headquarters since its construction in 2001. KPMG are expected to vacate the property at the latest in June 2026.

CapMan Real Estate plans to modernise the office and retail spaces, improving their energy efficiency and overall tenant attractiveness. The property is currently certified BREEAM In-Use Very Good. CapMan Real Estate is targeting a BREEAM in-use Excellent or BREEAM in-use Outstanding rating through its ambitious ESG investment plan.

”We look forward to developing this asset, creating a modern and attractive office space answering future tenants needs. The area is expected to become even more connected going forward and I see excellent potential for this iconic asset,” shares Magnus Berglund, Partner, Head of CapMan Real Estate Sweden and Norway.

The EUR 564 million CapMan Nordic Real Estate III Fund was established in 2020 and invests primarily in office, retail, and residential real estate in the Nordic regions.

CapMan Real Estate currently manages approximately EUR 4.5 billion in real estate assets and the Real Estate Team comprises over 65 real estate professionals located in Helsinki, Stockholm, Copenhagen, Oslo and London.

For more information, please contact:

Magnus Berglund, Partner, Head of CapMan Real Estate Sweden and Norway, magnus.berglund@capman.com, +46 707 866 808

About CapMan
CapMan is a leading Nordic private asset expert with an active approach to value creation. As one of the private equity pioneers in the Nordics we have built value in unlisted businesses, real estate, and infrastructure for over three decades. With approx. €5 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We are dedicated to set science-based targets to reduce our greenhouse gas emissions in line with the Paris Agreement. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover minority and majority investments in portfolio companies and real estate, and infrastructure assets. We also provide wealth management solutions. Our service business includes procurement and analysis, reporting and back office services. Altogether, CapMan employs approximately 180 professionals in Helsinki, Stockholm, Copenhagen, Oslo, London and Luxembourg. We have been listed on the Nasdaq Helsinki since 2001. Read more at www.capman.com.  

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CapMan Real Estate promotes Thomas Laakso as Partner and fund director for the Hotels fund

Capman

Thomas Laakso, Investment Director at CapMan Real Estate, has been promoted Partner. Simultaneously, he takes over leadership of the CapMan Hotels II fund from Pirjo Ojanperä, who transitioned to a Senior Advisor role in December after a long career at CapMan.

CapMan Hotels II fund is one of the largest owners of hotel properties in the Nordics. Mr. Laakso, who has extensive experience from hotel operations, development, consulting and asset management across Europe, the Middle East, Africa and the USA, started working with CapMan’s Hotels investment strategy one year ago with the ambition to expand and internationalise its operations.

“I’m very excited with the direction for the Hotels strategy under Thomas’ leadership. His background and expertise will help realize the fund’s Northern European focus for fundraising and deal flow. I also want to thank Pirjo for her outstanding work with managing the current hotel asset portfolio and her extensive career at CapMan,” says Mika Matikainen, Managing Partner of CapMan Real Estate.

“I appreciate the trust and am particularly grateful for Pirjo Ojanperä for all she has done for the fund and for me personally.  This is an exciting time for the hotel fund. The speed of the hotel industry’s post-Covid recovery has exceeded everyone’s expectations and the long-term fundamentals are sound. With some repricing pressure in the market, we see interesting acquisition opportunities going forward,” says Thomas Laakso, Partner, CapMan Real Estate.

“I’m grateful for the long journey together with CapMan and its knowledgeable real estate team and stakeholders over the years. Together, we have served and advanced the hospitality market. In Thomas, the fund now has a very qualified new leader and I want to warmly welcome him as he continues our development efforts which I will continue to support as Senior Advisor,” says Pirjo Ojanperä, Senior Advisor at CapMan Real Estate.

CapMan Hotels II fund is a semi-open-ended fund with an evergreen structure and a continuous term. It invests in hotel properties generating a stable and predictable income. The current portfolio consists of 27 assets across Finland and Sweden with multiple leading operators as tenants and a weighted average lease term (WALT) of 25 years based on 100% index linked leases. The fund has €368 million in equity commitments and the open-ended structure of the fund allows for growth through new capital and portfolio expansion. The attractive structure combined with the existing strong portfolio create an excellent foundation for future growth. The fund is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation.

CapMan’s Real Estate team comprises 65 real estate professionals in Helsinki, Stockholm, Copenhagen, Oslo, Jyväskylä and London. CapMan Real Estate currently manages over €4.0 billion in real estate assets.

For more information, please contact:

Mika Matikainen, Managing Partner, CapMan Real Estate, +358 40 519 0707

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With approx. €5 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, wealth management, and analysis, reporting and back office services. Altogether, CapMan employs around 180 people in Helsinki, Stockholm, Copenhagen, Oslo, London, Jyväskylä and Luxembourg. We are a public company listed on Nasdaq Helsinki since 2001 and a signatory of the UN Principles for Responsible Investment (PRI) since 2012. Read more at www.capman.com.

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Zibber continues to grow rapidly with the acquisition of AV2

Mentha

Zibber, a specialist in real estate presentation and related services for realtors, is taking over industry competitor AV2. This is Zibber’s third acquisition in a short period of time, further strengthening the company’s leading position in professional real estate presentations on the Dutch market. Thanks to the acquisitions, the company can further invest in improving the customer experience and employee satisfaction.

AV2 will continue as a label under Zibber for the time being, and in this way, services and available knowledge and technology will be exchanged and coordinated. For example, Zibber’s 3D laser scan will be introduced at AV2 over time and both parties will benefit from the bundling of the network of photographers for even better national coverage and greater capacity to accept assignments.

Lidy Zwijnenburg, founder of AV2 comments: “After 18 years filled with passion and pride in building AV2 into a relevant player in real estate presentations, the time has now come to hand over the baton to Zibber. I wanted to offer security and continuity to my staff and customers and I found this with Zibber. Their plans match the ambition which I have always had.”

Dogan Kahveci, co-founder of Zibber adds: “The enthusiasm and team spirit of Lidy and her company really appealed to us. She and her team have succeeded in becoming successful in their own style with an attractive service portfolio. I look forward to taking further steps together with the team.”

The acquisition of AV2 follows hard on the heels of the recent acquisitions of SOO media and Topr and fits in with the growth strategy of Zibber and Bright River, which belong to the same holding company. The leading position in the Netherlands offers opportunities to grow into an international specialist in the field of visual content production for real estate, e-commerce and leisure.

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Aurora Capital Partners Backed Grace Hill Acquires Edge2Learn and Ellis Partners in Management Solutions

Aurora Capital

GREENVILLE, S.C., Dec. 6, 2022 /PRNewswire/ — Grace Hill, an innovator of talent and customer management solutions for commercial and multi-family real estate, announced today that it has acquired Edge2Learn, an e-learning company providing training and policy management solutions in the multifamily industry, and Ellis Partners in Management Solutions (“Ellis”), a provider of mystery shopping and resident and employee survey solutions.  Financial terms of the transaction were not disclosed.

Edge2Learn and Ellis provide e-learning as well as policy, survey, mystery shopping and data-driven insights to help property owners and operators retain top talent and improve property operating and financial performance.  The companies have established a deep stable of industry leading content with over 600 online training courses that serve multi-family rental communities, including conventional, affordable, student and senior markets.  Together, the combined company will provide a next-generation employee and property intelligence platform that maximizes an employee’s potential and a company’s bottom line.

“Edge2Learn and Ellis share our commitment to developing best-in-class training, mystery shopping and management solutions to help leading real estate operators and owners increase property performance, reduce operating risk and grow and develop employees,” said Kendall Pretzer, CEO of Grace Hill.  “By bringing our resources together, we will create a clear leader in the industry, enabling us to further deliver on our mission to improve employee performance and development while delivering important insights to owners and operators.  I look forward to working with Joanna, Francis and the rest of the Edge2Learn and Ellis teams to continue advancing the innovative tools we offer the multi-family and commercial real estate industries.”

“Grace Hill, Edge2Learn and Ellis have established well-deserved reputations as leaders in real estate training and customer feedback,” said Joanna Ellis, Co-Founder and Chief Executive Officer of Edge2Learn and Ellis.  “We are excited to partner with the Grace Hill and Aurora teams to create a one-of-a-kind company that understands and continues to prioritize the needs of our combined customer base.”

“This combination will allow us to leverage the best of both companies,” added Francis Chow, Co-Founder and Chief Strategy Officer of Edge2Learn and Ellis.  “Together, we will combine the best talent and integrated solutions to provide exceptional service to our customers with an expanded product portfolio, all while investing in new and innovative solutions to continue to address our customers’ most critical operating challenges.”

“We identified Grace Hill as a unique market leader with significant growth potential, and this is exactly the type of transformative transaction we look to execute early in our hold period,” said Rob Fraser, Partner at Aurora.  “The combination of these leading businesses and management teams will enhance long-standing customer relationships through a larger suite of scalable management and training solutions and deeper customer service capabilities, and we will invest aggressively to continue to be the innovation leader in the market.”

Since partnering with Aurora in May 2021, Grace Hill has enhanced its management team with the appointment of Kendall Pretzer as CEO in May 2021 and the addition of Charles Loop as Chief Financial Officer, Todd Harkness as Chief Revenue Officer, Rob Beauchamp as Chief Product Officer and Traci Johnson as Chief Marketing Officer.

Massumi + Consoli LLP and Gibson Dunn & Crutcher LLP served as legal advisors to Grace Hill.

About Grace Hill
Grace Hill provides technology-enabled performance solutions that help owners and operators of real estate properties increase property performance, reduce operating risk and grow top talent. Its industry-leading solutions covering policy, training, assessment, survey, and data-driven insights are bolstered by years of real estate experience, in-depth service-level expertise and outstanding customer support. Today, more than 500,000 real estate professionals from more than 1,700 companies rely on talent performance solutions from Grace Hill. Visit us at gracehill.com or on LinkedIn.

About Edge2Learn
Edge2Learn is an e-learning company whose focus is the Property Management Industry and specializes in property management training and policy management solutions. With almost 40 years of industry experience and a commitment to increase multifamily performance, Edge2Learn is passionate about delivering education, assessment, and policies that maximizes benefits for both companies and employees. Edge2Learn program engages learners and prepares them to deliver a superior customer experience. Also, in turn, it improves operating performance and reduces corporate liability risks and overall employee turnover.

About Ellis
Established in 1984 to evaluate customer service and performance of onsite leasing professionals through comprehensive mystery shopping reports, Ellis has become the nation’s leading apartment mystery shopping company.  The growing demand to further understand and improve lead conversion encouraged the company to expand into resident retention services in 2011, introducing multiple touchpoint resident survey programs that allow clients to understand their customer’s journey through customer feedback.  In conjunction with its survey platform, Ellis offers employee surveys that provide insight into the level of engagement with and loyalty to your organization and help you better understand your employees’ personal goals for career growth.

About Aurora Capital Partners
Aurora Capital Partners is a leading private equity firm focused principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics and actionable opportunities for growth in partnership with management. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Partners, visit: www.auroracap.com.

Media Contacts
Grace Hill
LinnellTaylor Marketing
Darcey Leach
(303) 682-5005
darcey@linnelltaylor.com

Aurora Capital Partners
ASC Advisors
Taylor Ingraham / Harriet Hartman
203-992-1230
tingraham@ascadvisors.com / hhartman@ascadvisors.com

SOURCE Aurora Capital Partners

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VICI Properties Inc. to Acquire Remaining 49.9% Interest in MGM Grand Las Vegas and Mandalay Bay Joint Venture from Blackstone Real Estate Income Trust, Inc.

Blackstone

New York – December 1, 2022 – Blackstone Real Estate Income Trust, Inc. (“BREIT”) and VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or “VICI”) announced jointly today that they have entered into a definitive agreement in which VICI, currently owner of a 50.1% interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort, will acquire BREIT’s 49.9% interest in the joint venture for cash consideration of approximately $1.27 billion and VICI’s assumption of BREIT’s pro-rata share of the existing property-level debt. The property-level debt has a principal balance of $3.0 billion, matures in 2032, and bears interest at a fixed rate of 3.558% per annum through March 2030.

The properties, situated at the south end of the Las Vegas Strip in Las Vegas, Nevada, are subject to an existing triple-net lease agreement between the joint venture and MGM Resorts International (NYSE: MGM). The lease will generate annual rent of approximately $310 million upon the commencement of the next rental escalation on March 1, 2023.

Jon Gray, President and Chief Operating Officer of Blackstone, said, “VICI Properties has been an outstanding partner on these assets and we are incredibly pleased to have delivered such exceptional returns for our BREIT investors. Las Vegas continues to be a high conviction market for Blackstone.”

Edward Pitoniak, Chief Executive Officer of VICI Properties, said, “We have been honored to be BREIT’s partner in the MGM Grand Las Vegas / Mandalay Bay joint venture and this transaction further demonstrates the ability of Blackstone and VICI to work together productively, now and in the future. We’re excited to further our investment in MGM Grand Las Vegas and Mandalay Bay, two of the largest and highest-quality resorts in what we believe is the leisure and convention destination with the most compelling future demand outlook. This transaction also provides us with the opportunity to further grow our partnership with MGM Resorts International as they look to capitalize on the growing vitality of the South Strip.”

Scott Trebilco, Senior Managing Director of Blackstone Real Estate, said, “The sale of these assets is an excellent outcome for our BREIT investors and enables us to further concentrate BREIT’s portfolio in its highest growth sectors, including logistics and rental housing.”

The MGM Grand Las Vegas / Mandalay Bay triple-net lease has a remaining initial lease term of approximately 27 years (expiring in 2050) with two ten-year tenant renewal options. Rent under the lease agreement escalates annually at 2.0% through 2035 (year 15 of the initial lease term) and thereafter at the greater of 2.0% or CPI (subject to a 3.0% ceiling).

VICI Properties intends to fund the transaction through a combination of cash on hand, proceeds from the settlement of existing outstanding forward equity sale agreements and assumption of the remaining 49.9% of the existing property-level debt. VICI expects the transaction to be immediately accretive to AFFO per share upon closing.

The AAA Four Diamond Resorts, MGM Grand Las Vegas and Mandalay Bay, feature:

  • Over 18 million building square feet
  • Approximately 11,000 guestrooms and suites (including Four Seasons and Delano hotels) across the two iconic properties
  • Approximately 321,000 square feet of gaming space and 191 table games and 2,235 slot machines and electronic table games
  • Approximately 3.0 million gross square feet of state-of-the-art exhibition and meeting facilities
  • A variety of amenities for its guests, including multiple Michelin Star winning restaurants, The Mansion at MGM Grand, numerous entertainment venues, the MGM Grand Garden Arena (with approximately 17,000 seat capacity), Hakkasan Night Club, Topgolf, and destination pools and spas
  • Situated on 226 well-located acres on the Las Vegas Strip

The transaction is subject to customary closing conditions and is expected to be completed early in the first quarter of 2023.

PJT Partners and Barclays are serving as BREIT’s financial advisors, and Simpson Thacher & Bartlett LLP is acting as BREIT’s legal counsel. Morgan Stanley & Co. LLC is acting as exclusive financial advisor to VICI Properties, and Hogan Lovells is serving as legal advisor to VICI Properties.

About Blackstone Real Estate Income Trust
Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. BREIT invests primarily in stabilized, income-generating U.S. commercial real estate across key property types and to a lesser extent in real estate debt investments. BREIT is externally managed by a subsidiary of Blackstone (NYSE: BX), a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $319 billion in investor capital under management. Further information is available at www.breit.com.

About VICI Properties
VICI Properties Inc. is an S&P 500® experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. VICI Properties’ national, geographically diverse portfolio consists of 43 gaming facilities comprising over 122 million square feet and features approximately 58,700 hotel rooms and more than 450 restaurants, bars, nightclubs and sportsbooks. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos, Inc., the Eastern Band of Cherokee Indians, Hard Rock International Inc., JACK Entertainment LLC, MGM Resorts International, Penn Entertainment, Inc., and The Venetian Las Vegas. The Company has a growing array of investing and financing partnerships with leading non-gaming experiential operators, including Great Wolf Resorts, Cabot, Canyon Ranch and Chelsea Piers. VICI Properties also owns four championship golf courses and 34 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ strategy is to create the nation’s highest quality and most productive experiential real estate portfolio. For additional information, please visit www.viciproperties.com.

Forward-Looking Statements
This press release includes “forward-looking” statements and “safe harbor statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including those described in VICI’s and BREIT’s public filings with the Securities and Exchange Commission (the “SEC”). VICI and BREIT have based forward-looking statements on current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, expectations regarding the closing of the transaction, any benefits expected to be achieved as a result of the transaction and statements regarding future performance, including VICI’s expected accretion following completion of the transaction. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include risks related to delays or impediments to completing the transaction and other factors described in VICI’s periodic reports filed with the SEC as well as those described under the section entitled “Risk Factors” in BREIT’s prospectus and its annual report for the most recent fiscal year and any such updated factors included in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In providing forward-looking statements, neither VICI nor BREIT is undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If VICI or BREIT updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

Contacts

Blackstone
Jeffrey Kauth
Jeffrey.kauth@Blackstone.com
(212) 583-5395

VICI
David Kieske
EVP, Chief Financial Officer
DKieske@viciproperties.com

Danny Valoy
Vice President, Acquisitions & Finance
DValoy@viciproperties.com

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Gaw Capital Partners Completes Acquisition of Logistics Portfolio in Japan

December 1, 2022, Hong Kong – Real estate private equity firm Gaw Capital Partners announced today that the firm, through a fund under its management, has acquired a logistics portfolio with seven fully-let assets across Greater Tokyo, Japan.

The portfolio comprises of seven high-quality logistics assets with 76,593 tsubo (253,200 sqm) net rentable area, covering the circa 37 million population of Metropolitan Tokyo. All assets are located in popular logistics hubs across Greater Tokyo, offering a combination of excellent access to major cities nearby, attractive employment environment, and strong business continuity plan support.

The assets are located in Chiba, Joso, Hasuda, Hashimoto, Atsugi and Ashikaga, with most of the assets within a one-hour drive of central Tokyo. By leveraging Gaw Capital’s in-depth understanding of the logistics sector and local market knowledge, the firm plans to unlock the hidden value of the portfolio by carrying out a series of value-add strategies including cold storage conversion, and proactive asset management and ESG initiatives.

Isabella Lo, Managing Director and Head of Japan at Gaw Capital, said, “We are delighted to have completed our first logistics portfolio in Japan. With rising demand driven by continued urbanization and e-commerce, logistics assets in Japan continue to mature as an institutional asset class, increasingly attracting capital from both domestic and international investors. With the support from our experienced in-house team and local logistics partners, I believe we would fully unlock the returns.”

Joseph Chan, Managing Director, Principal – Investments at Gaw Capital, said, “We are delighted to have acquired the seven fully let logistics assets in Japan. We will integrate ESG elements, such as adding solar panels across the portfolio to reduce the carbon footprint of daily warehouse operations, obtain certification in green building rating programs such as LEED, CASBEE and WELL Building Standard, and ensure the logistics assets fulfil the ESG requirements of international logistics tenants. We also see strong value-add potential in several properties across the portfolio, which will be unleashed by Gaw Capital with our experience and track record across other APAC regions. Responding to Japan’s rising demand for cold storage facilities, our value-add strategy will include capturing the opportunity in this niche market by bringing in our expertise in recent successful cold storage conversions regionally.”

The population in Tokyo continues to grow, driving demand for various goods consumption and the subsequent demand for logistics. The e-commerce market in Japan saw impressive growth during the pandemic, reaching JPY 20 trillion in 2021, and this rapid change consequently increased the demand for logistics facilities. Despite this strong growth, e-commerce penetration in Japan continues to lag other developed markets, and the strong growth potential is fueling the future demand for logistics.

Gaw Capital Partners was named ‘Alternatives Investor of the Year: Asia’ at the PERE Awards 2021 after receiving the largest number of votes in a public ballot of the real estate industry. The company started to acquire, develop and manage modern logistics facilities with local partners in China since 2014. The logistics platform has circa 100 professionals with strong in-house expertise covering the full spectrum of business development, investment, construction, leasing and property management. Over the past eight years, the platform has invested in nearly 40 projects with circa 4 million sqm in China. Through funds under its management, Gaw Capital also acquired and managed logistics projects in Australia and Vietnam.

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About Gaw Capital Partners

Gaw Capital Partners is a uniquely positioned private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.

Specializing in adding strategic value to under-utilized real estate through redesign and repositioning, Gaw Capital runs an integrated business model with its own in-house asset management operating platforms in commercial, hospitality, property development, logistics, IDC and education. The firm’s investments span the entire spectrum of real estate sectors, including residential development, offices, retail malls, serviced apartments, hotels, logistics warehouses and IDC projects.

Gaw Capital has raised seven commingled funds targeting the Greater China and APAC regions since 2005. The firm also manages value-add/opportunistic funds in the US, a Pan-Asia Hospitality Fund, a European Hospitality Fund and a Growth Equity Fund, and it also provides services for credit investments and separate account direct investments globally.

Since 2005, Gaw Capital has commanded assets of US$34.3 billion under management as of Q2 2022.

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KREST Grows Multifamily Portfolio with Acquisitions in Brooklyn and Philadelphia

KKR
November 1, 2022

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced that KKR Real Estate Select Trust Inc. (“KREST” or the “Fund”) has completed the purchases of two Class A multifamily properties with a combined 1,380 units from different sellers in separate transactions. The latest additions to KREST’s portfolio include a full-service, LEED Silver multifamily property located in Downtown Brooklyn and a highly amenitized multi-building asset located on the border of the Main Line and West Philadelphia.

“We continue to see long-term trends supporting demand for lifestyle-oriented real estate near city centers,” said Daniel Rudin, Managing Director on KKR’s real estate equity team. “Both of these assets are well-located from a live/work perspective and are ideal for younger working professionals seeking quality lifestyle-oriented housing with easy access to major cities.”

The Downtown Brooklyn asset is a trophy, 2011 vintage, full-service residential property with modern finishes and amenities, including an outdoor terrace, fitness center, 24-hour doorman, and a children’s playroom. The property is comprised of 365 rental units positioned in one of the top-performing Brooklyn submarkets, within walking distance of several public transportation stations, servicing all of Manhattan’s critical transportation lines.

The Philadelphia asset, purchased alongside Mack Real Estate Group (MREG), is an integrated five building complex comprising 1,015 units. Located on the border of Lower Merion Township in the Main Line and West Philadelphia, the property provides easy access to Center City and to numerous nearby universities and hospitals. Gut-renovated in 2015, the property offers best-in-class amenities, including a pool club, lounge, fitness center, and dog park. Mack Property Management, L.P., a wholly-owned subsidiary of MREG, will handle property operations. The transaction is KKR’s second Philadelphia multifamily acquisition with MREG.

“We are pleased to grow KREST’s exposure to income-generating residential properties with these two investments. KREST acquired both properties using irreplaceable long-duration fixed-rate financing, which creates compelling cash yields,” said Billy Butcher, Chief Executive Officer of KREST and Chief Operating Officer of KKR’s global real estate business. “We continue to add high-quality properties to our growing portfolio of multifamily assets and believe these properties offer attractive value to a wide range of residents.”

The acquisitions are part of KREST’s stabilized real estate investment strategy, one of the Fund’s three primary investment strategies, which focuses on thematically-driven, income-generating real estate in high growth markets, including well-leased multifamily. KREST’s other focus areas include prime single tenant real estate and private real estate debt.

About KREST

KKR Real Estate Select Trust Inc. (“KREST”) is a continuously offered, registered closed-end fund that thematically invests in high quality, stabilized, income-oriented commercial real estate equity and debt. The fund is open to all investors with daily subscriptions and its primary investment objective is to provide attractive current income, with a secondary objective of long-term capital appreciation. KREST is managed by KKR Registered Advisor LLC, an affiliate of KKR & Co. Inc., and utilizes the experience and reach of KKR’s global real estate team and the resources available through the KKR platform. For additional information about KREST, please visit its website at www.krest.reit.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Media Contacts
Miles Radcliffe-Trenner and Emily Cummings
+1 212-750-8300
media@kkr.com

Source: KKR

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